San Francisco Poop-Testing Company Charged with Fraud

DM

You might think your poop is nothing but a waste product, but you’d be wrong. It can actually hold valuable information about your health. That’s why many companies provide different kinds of services to analyze your bodily waste. But for one such company, their test material just hit the fan. On March 18, the federal Securities and Exchange Commission (SEC) charged San Francisco-based uBiome with massive investor and insurance fraud. The company, founded in 2012, provided services that they claimed accurately analyze a customer’s intestinal microbiome. Except that they didn’t. According to the SEC, the company’s tests were nothing but bulls-… Uh, bull fecal samples. According to the SEC, uBiome’s founders Jessica Richman, 46, and Zachary Schulz Apte, 36, collected more than $60 million from investors based on bogus claims about their company. They presented their firm as a “successful start-up with a proven business model,” the SEC claims. “Richman and Apte portrayed the company as having a strong track record of receiving health insurance reimbursement for its clinical tests, which purportedly could detect microorganisms and assist in diagnosing disease,” the SEC complaint reads.

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